21 September 2015: A policy brief by the UN Conference on Trade and Development (UNCTAD) argues that the proliferation of non-tariff measures – policy measures other than ordinary customs tariffs that can have an economic effect on international trade – plays an important role in shaping global trade patterns and their sustainability.

Titled ‘Non-Tariff Measures and Sustainable Development Goals: Direct and Indirect Linkages,’ the brief highlights how trade can contribute to the achievement of the Sustainable Development Goals (SDGs), as follows: trade can contribute to Goal 1 (end poverty in all its forms everywhere) by facilitating economic growth; on Goal 2 (End hunger, achieve food security and improved nutrition, and promote sustainable agriculture), trade generates income, spurs agricultural production, and affects access, availability and stability of food security; on Goal 5 (Achieve gender equality and empower all women and girls), trade can provide opportunities for the economic empowerment of women; on Goal 7 (Ensure access to affordable, reliable, sustainable and modern energy for all), trade and global value chains can be drivers of technological innovation and the production of renewable energy sources; on Goal 8 (Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all), trade can contribute to economic growth and employment; on Goal 9 (Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation), trade can contribute to industrialization; on Goal 10 (Reduce inequality within and among countries), trade-led growth can contribute to reducing inequality between countries; and on Goal 17 (Strengthen the means of implementation and revitalize the global partnership for sustainable development), trade can be a means of implementation for sustainable development.

However, UNCTAD notes, the positive development impacts of trade are not unconditional. Economic development requires an appropriate sequencing of trade openness as well as an enabling environment of other policy and non-policy factors.

Non-tariff measures are increasingly applied to trade designed to protect the environment and human, animal and plant life, and directly regulate issues related to the SDGs: food, nutrition and health, sustainable energy, sustainable production and consumption, climate change, and the environment. The costs stemming from such measures can impair trade’s development potential, but eliminating them is rarely an option. Therefore, UNCTAD suggests two ways to reduce the related trade costs: increasing transparency, and reducing procedural obstacles. In that regard, the World Trade Organization (WTO) agreements on sanitary, phytosanitary and technical barriers to trade contain principles calling for a science-based approach, and adherence and harmonization to international standards.

UNCTAD and several of its partners are spearheading an international initiative to collect data on mandatory regulations currently in force in many countries. Detailed information for each non-tariff measure includes information sources, measures, and products and countries affected, with coverage of over 90% of world trade envisaged for 2015. [Policy Brief No. 37, September 2015: Non-Tariff Measures and Sustainable Development Goals: Direct and Indirect Linkages]